Chelsie Andera and Hannah Ruona Money Matters!. Budgeting

Chelsie Andera and Hannah Ruona

Money Matters!

Budgeting

“In a correctly formed budget, income should equal expenses. There

should not be money left over.”

Why keep a budget?

Match income with expensesPredetermines how money is allocatedPay bills on time

Tracking your spending

Adjusting expensesAre you spending too much?How to save

Evaluation of a budget

What have you taught your children about budgeting?

Savings/Checking Accounts

“Ten percent of earnings should be set aside for

savings.”

Benefits of Accounts

Savings AccountWhy save money?How to save money

Checking AccountTo properly trackAlternative to a credit card

Debit card

Do your children have checking and/or savings accounts?

Credit Cards

“You should never charge more on a credit card

than can be paid off each month.”

Credit Cards

84% of undergrads had a credit card (2009)*

What to look for

Benefits Build credit Buying power Secured/Limited

Drawbacks Can hurt credit score if used

incorrectly Accumulated interest

Credit Card Act ** Inform customers

when rates/fees change

Time to pay off balance using minimum

Under 21 requires cosigner

* “Coping with Cash 101.” USA Today. 2009. ** “How Will the Credit Card Affect Me?” Time.com.

What have you discussed about credit cards with your children?

Building credit

“You don’t need a credit card to build credit.”

Credit Building

Other ways to build creditSeparate cell phone accountBeing employed

Why it’s crucial to build creditFuture loans (house, car, etc.)EmployersRenters

What ways have your children started to build credit?

Communication

“Talk to your kids about finances!”

Who’s Paying?

Which expenses?

Examples:Cell phoneCar insuranceGasGroceriesEating Out

Expectations

Have you discussed with your children what their financial responsibilities will be?

Discussion PointsBudgeting

Match income with expenses

Savings/Checking AcctsStart saving now for the futureKeep track of your spending

Credit CardsCharge what you can pay off

Building CreditLook into options other than credit cards

CommunicationPlan and don’t be surprised

Final Thoughts

Fall SeminarsBudgetingBuilding Credit/Credit Cards

Contact InformationChelsie Andera

CANDERA@uwsuper.eduHannah Ruona

HRUONA@uwsuper.edu

Thank You!

Contact Information

Chelsie Andera CANDERA@uwsuper.edu

Hannah Ruona HRUONA@uwsuper.edu